New data has revealed that most residential mortgages grew during quarter 4 of 2017.
According to the figures from Mortgage Brain, the price of a loan to value (LTV) three-year fixed rate mortgage at 60% grew by 5% during the final quarter of last year. For a 70% LTV mortgage at a two-year fixed rate, there was a price rise of 4%.
The data also showed a 3% increase for an 80% LTV fixed rate as well as an 80% two-year tracker.
More modest increases were observed for the 70% and 80% LTV three-year fixed rates, both growing by 2%. The 90% two-year fix, the 70% five-year fix and the 60% two-year tracker all saw a price rise of 1%.
When considering these percentage rises on a monetary level, the 5% rise for the three-year fix at 60% is equal to a rise of £360 on an annual basis. This is in terms of a £150,000 mortgage.
Looking at the data recorded over a longer period, the analysis reveals a clear reduction over the most recent three years. For example, compared to January 2015, the price of a 90% two-year fixed rate has fallen by 13%.
Commenting on the figures was CEO of Mortgage Brain, Mark Lofthouse. He stated: “It looks like we’re starting to witness the effects of November’s interest rate rise and previous predictions with slow and steady cost increases being recorded month on month since October 2017.
“So far, the increases have been marginal; however, with further rate increases predicted, we could be starting to see a shift in change in terms of mortgage cost movement compared to the past few years. Our analysis at the end of the first quarter of 2018 should reveal more.”
